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BigorU [14]
2 years ago
11

Which cmo tranche will be offered at the lowest yield? a plain vanilla b targeted amortization class c planned amortization clas

s d companion
Business
1 answer:
astra-53 [7]2 years ago
8 0

A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority.

<h3>What is a CMO tranche?</h3>

A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority. In a sequential pay CMO, interest is paid on each tranche as long as the original balance is not entirely repaid.

Tranches are segments of a CMO or other debt or instrument that are organized to split risk or classify assets according to attributes. Securities are personalized and marketable to specific investor segments because to this division and portioning.

The specification of the term structure of interest rates and a model for valuing the call risk borne by the various tranches are the two essential components of CMO valuation.

Therefore, the correct answer is option d companion.

To learn more about the CMO tranche refer to:

brainly.com/question/28240258

#SPJ4

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Item 1Item 1 Thomas invests $109 in an account that pays 6 percent simple interest. How much money will Thomas have at the end o
olga nikolaevna [1]

Answer:

Total amount at the end of 4 years = $135.16

Explanation:

A simple interest account pays interest on only the sum deposited at an annual rate for a specified period of time without compounding or adding the interest earned in a particular period in the calculation of interest earning for the next period. Thus, if 1000 is invested and interest s earned at 10% then the interest earned will remain constant for every period the money is still deposited in the account.

The formula to calculate interest under simple interest method is,

Interest = Principal * Annual Rate * Time in years

Total Interest earned = 109 * 6% * 4

Total interest earned = 26.16

Total amount at the end of 4 years = Principal + Interest

Total amount at the end of 4 years = 109 + 26.16

Total amount at the end of 4 years = $135.16

5 0
4 years ago
Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebra
steposvetlana [31]

Answer:

$1,300

Explanation:

Based on the information given we were told that She drove 918 miles in which spent the amount of $1,300 to move all her household items which simply means that her moving expenses adjustment will be the amount of $1,300 which was the amount spent to move her household items from Nebraska to Texas.

Therefore Joanna's moving expenses adjustment is $1,300.

7 0
3 years ago
Hal is enrolled for one class at a local community college; tuition cost him $190. Hal's AGI is $20,000. Before considering a li
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Answer:

the lifetime learning credit is $38

Explanation:

The computation of the lifetime learning credit is shown below:

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= $38

Hence, the lifetime learning credit is $38

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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6 0
3 years ago
Ronaldo, the general manager of RipnRoll Furniture, believes that each employee must thoroughly understand the goals of the orga
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Answer:

The correct option is (B).

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According to Ronaldo, the general manager of Ripnroll furniture, the most critical aspect that every employee must focus on is to understand and fulfill the company’s goals and objectives. When an employee focuses on the goals of the organization, it will help them to improve their performance, and ultimately they will achieve job satisfaction and an improved job performance.

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4 years ago
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